Beauty retailer Ulta's Q3 sales beat expectations

Ulta Beauty

04/12/2025 21:21

Overview

Ulta Beauty Q3 net sales up 12.9% to $2.9 bln, beating analyst expectations

Adjusted EPS for Q3 beats consensus, remaining flat at $5.14

Company raises fiscal 2025 guidance, reflecting confidence in strategic initiatives

Outlook

Ulta Beauty raises fiscal 2025 net sales guidance to approximately $12.3 bln

Ulta Beauty expects fiscal 2025 operating margin to be 12.3% to 12.4%

Company raises fiscal 2025 diluted EPS guidance to $25.20 to $25.50

Result Drivers

COMPARABLE SALES - Driven by a 3.8% increase in average ticket and a 2.4% increase in transactions

GROSS PROFIT MARGIN - Increased due to lower inventory shrink and higher merchandise margin

SG&A EXPENSES - Rose due to higher incentive compensation, store payroll, and amortization of cloud-based software investments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net sales
Beat
$2.86 bln
$2.72 bln (22 Analysts)
Q3 EPS
Beat
$5.14
$4.64 (23 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

Wall Street's median 12-month price target for Ulta Beauty Inc is $600.00, about 10.2% above its December 3 closing price of $544.52

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw9tgQ29a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)